The hotel sector in the process of recovery
KUALA LUMPUR (October 17): With interstate travel allowed now that the immunization threshold has reached 90%, industry experts hope to see signs of recovery in the hospitality sector by the end of the year, driven by the domestic tourism.
Zerin Properties Managing Director and CEO Previndran Singhe is optimistic about the boom in domestic tourism, as seen with the reopening of borders after the first period of movement control ordinance. “As for the full recovery, we expect it to come sooner than expected. We expect a full recovery of the travel and tourism industry by the end of 2022.”
Malaysian Hotel Association (MAH) CEO Yap Lip Seng expects some recovery in the first half of 2020, but notes that domestic tourism alone will not be enough for a full recovery in the hotel industry . “We have to take into consideration the reduced purchasing power of Malaysians in general. Eventually, international arrivals are needed, and with plans in place, we look forward to the return of international tourists by 4Q2022. “
While hotel closures are expected to ease, it is undeniable that the hospitality industry has been hit hard by the pandemic, raising the issue of the massive drain of talent, labor and the broader issue of how the industry will recover. James Buckley, Executive Director of Capital Markets at Knight Frank Malaysia, said: “It will be quite difficult to hire new employees and it will take time to train them.”
YY Lau of JLL Property Services (M) Sdn Bhd notes that most of the assets for sale are two to four star hotels located in cities, rather than luxury hotels or resorts. “Some of these hotels were already on the market before the pandemic for various reasons. “
Read more about this in the latest issue of City Country, who is dating The Edge Malaysia weeklyOctober 18 edition.